Always use full cream milk to make paneer at home. Boil milk in a deep pan and keep on stirring so that it do not stick at the bottom of the pan. Once the milk starts to boil add lemon juice or vinegar into it. Within few minutes you will see that the milk will separate from the water. Turn off the flame as soon this happens and add cold water or ice cubes into it. The paneer will instantly separate from the water and will start to float at the surface of the pan.
Now sieve the chenna with a muslin cloth. Squeeze the cloth with hands to strain any excess water from the paneer and take it out from the cloth. Chenna to make rasgulla is ready.
If you want to use this paneer to make any curry recipe, then do not takeout the paneer from the cloth. Instead place a heavy object at the end of the cloth for half an hour. Within half an hour, the paneer will become hard. This can be used to make Indian curry recipe like matar paneer, palak paneer, paneer butter masala etc.